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Slack Doesn’t Matter As Much As It Once Did

Solid Hiring Without Wage Jump Tests Fed Hopes for Inflation

Bloomberg News on September 02, 2016

“Slack doesn’t matter” as much as it once did, said Laurence Meyer, who as a Fed governor from 1996 to 2002 was one of central bank’s biggest proponents of the Phillips Curve, a description of the tradeoff between unemployment and inflation.